Crimean Crisis: Russia Threatens to Abandon US Dollar And Dump American Debt

PIC: Don Allesandro (CC)

PIC: Don Allesandro (CC)

The Russian administration says that it will have no choice but to respond if the United States imposes economic sanctions over the ongoing Crimean crisis.

Via Information Liberation:

The Obama administration and the hotheads in Congress are threatening to hit Russia with “economic sanctions” for moving troops into Crimea. Yes, those sanctions would sting a little bit, but what our politicians should be made aware of is the fact that Russian officials are promising “to respond” if economic sanctions are imposed on them. As you will read about below, one top Kremlin adviser is even suggesting that Russia could abandon the U.S. dollar and start dumping U.S. debt. In addition, he is also suggesting that if sanctions are imposed that Russian companies would not repay the debts that they owe U.S. banks. Needless to say, Russia could do far more economic damage to the United States than the United States could do to Russia. The U.S. financial system relies on the fact that the rest of the planet is going to use our currency to trade with one another and lend gigantic piles of it back to us at super low interest rates. If the rest of the world starts changing their behavior, we are going to be in a massive amount of trouble. Those that believe that the United States is “economically independent” are being quite delusional.

In order for U.S. economic sanctions against Russia to be effective, Europe would also have to get on board.

But that simply is not going to happen.

Keep reading at Information Liberation.

26 Comments on "Crimean Crisis: Russia Threatens to Abandon US Dollar And Dump American Debt"

  1. Gjallarbru | Mar 5, 2014 at 6:14 pm |

    That is exactly what I was thinking. Threatening a banana republic with “sanctions” is fine, as you’ll get away with. Threatening Russia with “sanctions”, well it’s a little too big for that.

    That’s part of the problem for the US isn’t it. If your currency is at the center of the world economy, you get a big boost. But if a big enough player is pissed at you, you’re also not holding that big of a stick.

    • InfvoCuernos | Mar 5, 2014 at 9:54 pm |

      It is pretty crazy to think that economic sanctions will work against THE world power that opposed the US and helped out any and all countries that the US previously sanctioned. Hell, now’s Cuba’s chance to pay back the old motherland(and just about every other country that has at any time been communist). On the other hand, we are all over that region with airbases close enough to strike easily and quickly. The goddamn Crimea. Who would have thought that we would be fighting over that place in the 21st century?

      Abby now sees her paymaster for who he really is. I’m pretty sure if she goes to the Crimea, nobody will see her on the news again.

      • Gjallarbru | Mar 6, 2014 at 7:01 am |

        Funny, I didn’t even give any thought to Abby and RT. A bunch here did, but for me she seemed to have escaped my thoughts.

  2. VaudeVillain | Mar 5, 2014 at 6:14 pm |

    Economic MAD is clearly less immediately lethal than Nuclear MAD, but not much smarter.

    In any event, I’m not sure I see how Russia plans to win if things keep spiraling the way they have. They are no longer the super power they once were, their military coalition has crumbled around them to the degree that the city in which it was constructed is now the capital of a key NATO member, and they are quite literally surrounded by desperate people searching for an outside threat against whom to unite.

    I, for one, am not terribly eager to witness either World War 3 OR a global People’s Revolution. I know some of you out there might swing that way, but this is not the sort of interesting I expect to survive, and that scares the shit out of me.

    • kowalityjesus | Mar 5, 2014 at 6:52 pm |

      Very apt comment

    • Rhoid Rager | Mar 5, 2014 at 7:17 pm |

      I doubt you’re going to get anything done while you’re shitting yourself.

    • Bluebird_of_Fastidiousness | Mar 5, 2014 at 9:42 pm |

      The only goal in any MAD scenario is to not lose. Unfortunately, the Western powers have lost sight of this fact in their drunken lust for power. In their insanity, they think they can ‘win’. You are correct, I think, in the danger of this delusion. This coup is a MAJOR score for NATO dominance projection in the region and for the austerity vampires. The world economy was always set to crash. It’s truly remarkable they’ve kept the illusion going so long. Now the rulers will have a bad guy to blame when the house of cards hits the fan. Before then, some people are gonna get rich, and some are gonna settle some old scores.

      One important thing to keep in mind when considering the policy objectives of the ruling elite is that normal people are not on the same side as them on almost any issue unless our interests simultaneously align. Throughout the last century, they normally have – which is historically unusual. That age is coming to a close. Maybe not over “this” but certainly something, and certainly soon.

      I’m not eagerly anticipating this forecast. I hope I’m wrong. And if I weren’t, it would be nice to be able to avoid our placement in history, and the ineffable forces determining most our destiny. The illusions of individualism and agency aren’t helpful in coping with those nihilistic bitches, the fates. My successful living strategy remains to eat more bacon.

      • VaudeVillain | Mar 5, 2014 at 11:00 pm |

        Don’t shortchange the Eastern powers either, Russia definitely sees a “win” in this situation, and it evidently involves invading Crimea and the Ukraine. Historically, they follow that one up by invading Poland as well.

        I’m not sure what they think will happen if they start moving in that direction, but the Europeans and the Americans aren’t likely to sit idly by… and neither are the Chechens, Ukrainians, Afghans or anyone else with a bug up their butt for killing Russians. I’m pretty sure it won’t look much like a “win” for anyone, but maybe Putin knows something I don’t.

        • Eric_D_Read | Mar 5, 2014 at 11:19 pm |

          As far as I can tell, Putin is merely aiming for holding onto a strategic piece of land that gives Russia control over the Black Sea, and a check against U.S. plans to make Ukraine a satellite state complete with missile bases aimed at Russia.

        • Bluebird_of_Fastidiousness | Mar 5, 2014 at 11:19 pm |

          It’s very interesting to watch people suggest that Russia has acted aggressively in any way throughout this orchestrated catastrophe. I am consistently impressed with putin’s restraint. He understands this game much better than Obama and his masters. Remember, the goal is to not lose. Eventually the opposing party may exhaust and collapse (increasingly likely with the ponzi economies throughout the West}.

          This defensive action has everything to do with a new first strike capability from NATO, and about the amplification US/Isreali hegemony in the Middle East by castrating Russia’s Black Sea fleet. The Western powers are huffing and puffing because Vlad licked the icing off their cake.

          • VaudeVillain | Mar 5, 2014 at 11:35 pm |

            There are Spetsnaz in Ukraine. They’ve been photographed and documented. Russian nationals, including paramilitary personnel, have openly gone into Ukraine and begun military operations. Russian regulars have been spotted amassing on the Ukrainian border.

            I’m not saying that NATO isn’t being plenty aggressive here as well, but Russia has most certainly not acted only in defense. The view from Kiev is the back side of one big fucking fan, with a whole lot of shit incoming. I just hope we can keep the spatter to a minimum.

          • Bluebird_of_Fastidiousness | Mar 5, 2014 at 11:54 pm |

            I respectfully disagree, though I suspect we may be splitting hairs over what unjustified aggression consist of. One could argue that ANY military units entering Ukrainian territory without legitamate invitation would be unjustified. Unfortunately, the legitimate government was overthrown (by Western intervention}.

            As a person residing within 20 mi of a state capital, I just hope I’m not stuck in traffic when the spatter comes our way. Anybody not wearing 2,000,000 sunblock is gonna have a real bad day.

          • LovelyLady666 | Mar 6, 2014 at 3:17 am |

            I fully agree with your first statement bluebird and it’s getting more clear as both Putin, Obama, and UN/NATO make comments on the situation. The game being played is this, the “invasion” is not an actual invasion. (now someone argues the budapest treaty) In which i respond with they’re part of the osce organization which all major and many minor countries are a part of which is about protecting elections (which enough of it was what the protest were about) human rights, and this also allows Russia to protect their base stationed there.

            What will end up happening is something similar to when Russia invade Afghanistan and the US responded with force, except they went over the edge, side-stepping the citizens, and placing their own backed persons into power whist training a “military”..or al qaeda..for purposes of winning… which they didn’t in the long run since it was a dictatorship/military ruling we put in place that caused many citizens to resent us.

            I personally feel Putin is going to stick by his words but there are always other possible outcomes.
            1. He simply makes Obama/Kerry look like assholes (their threats are empty since Russias economy doesn’t rely on MUCH of the western powers (they own a lot of US debt) but on their oil reserves, which China needs most. He will stick by till Ukraine sorts itself out, keeping the peace, and allowing free elections and thus looking like a hero (kinda like he did when we invaded afghan after Russia and he “lost”, thus leaving people wondering….what if)

            2. It will be a tit for tat game that escalates with sanctions and horrible games being played until eventually nukes happen but only a little “bit”. Likely in both US and Russia.

            3. or lastly, this is a NWO operation to tear the Ukraine in half, let America invade, and then Russia attacks America over something the us does..all nations eventually get involve and the world turns into fallout…the last one is my conspiracy on it which i derive from Ragnarok (= figure it out….if ya can!

          • LovelyLady666 | Mar 6, 2014 at 3:23 am |

            also, i ignored economic sides of the argument because i’m poor and it doesn’t matter any which way what happens with that because i’ll be fucked, first, and foremost especially if the US becomes the next China.

  3. Thurlow Weed | Mar 5, 2014 at 6:17 pm |

    I am reserving judgement on this kerfuffle till Abby Martin gets on the ground and reports. Apparently, she has been ordered to Crimea by her employer after expressing an opinion about the appearance of Russian troops in the area, while still stationed in the relative safety of RT’s Washington, DC.

    Abby, I’m with you in spirit!

    • LovelyLady666 | Mar 5, 2014 at 6:34 pm |

      she’s tweeted that she’s not going.

    • Bluebird_of_Fastidiousness | Mar 5, 2014 at 8:27 pm |

      The secret ingredient in borscht there is polonium.

      • melitagnm105 | Mar 6, 2014 at 8:00 am |

        My Uncle Jacob got a year 2013 Audi TT RS Coupe by working part
        time online. imp source B­u­z­z­3­4­.­ℂ­o­m

  4. Tchoutoye | Mar 5, 2014 at 9:49 pm |

    Russia should have abandoned the US Dollar a decade ago already, in the wake of the illegal invasion of Iraq.

    • InfvoCuernos | Mar 5, 2014 at 9:56 pm |

      They probably would have a lot sooner than that if they hadn’t tied themselves up so thoroughly with it.

  5. In order for sanctions to work against ru, china would have to be on board. In light of Brazil, Russia, India, China, S Africa (BRICS) making economic agreements to trade directly without the FRN, sanctions wouldn’t only be laughable but would speed up the demise of the FRN. Maybe that’s the plan, order out of chaos.

    • Bluebird_of_Fastidiousness | Mar 5, 2014 at 11:38 pm |

      I’ve looked and I haven’t seen China’s involvement mentioned anywhere, least of all by China. China knows that conflict is bad for business. The US thinks otherwise, but half of the US is in the South. I think the Chinese see the writing on the wall, with Obama’s much trumpeted ‘pivot east’. It’s not a very veiled threat. “put the money in the bag and take this treasury note” How long will they put up with it is anyone’s guess. My guess would be before it’s their turn to be in Russia’s place.

  6. BuzzCoastin | Mar 6, 2014 at 12:44 am |

    invasions are ok when der homeland does it
    but not when others do it
    torture is ok when der homeland does it
    but not when others do it
    spying is ok when der homeland does it
    but not when others do it
    currency manipulation is ok when der homeland does it
    but not when others do it
    human rights violations are ok when der homeland does it
    but not when others do it
    it’s called aMerkin exceptionalism

  7. Eknaath Nagarkar | Mar 6, 2014 at 11:12 pm |

    Khrushchev had gifted Crimea to Ukraine when the latter formed part of the Russian Empire! Strictly speaking it was no different from shifting one’s belongings from one pocket to the other. It also explains why most Russians continue to inhabit the area to this day.
    However with Ukraine deciding to part ways, Crimea’s going back to Russia was always there a distinct possibility! In fact one wonders at this delayed action!

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